Global AC Drives Market - Growth, Trends, and Forecast (Outlook to 2028)

The AC Drive is an electronic device that ramps up an electric motor for smooth startup and controls electric motors' speed, torque, and direction. The AC drives are employed across the oil and gas, power generation, food and beverage, and metals and mining sectors.

Drivers:

Growing Investments in Manufacturing and Process Industries in Developing Countries:

The manufacturing and process industries transform materials, goods, or substances into new products. Various electric and electronic components and equipment are installed based on industry type, operation mode, and voltage requirement.

Some of the other Drivers:

• Low energy consumption of AC drives
• Increased demand for automated and motor-driven equipment
• Rising electricity prices and energy efficiency regulations
• The increasing rate of Industrialization and Urbanisation
• Growing demand for heating, ventilation, and air conditioning systems.

An AC drive is an electronic device used to control the speed of an electrical motor to: 

• Enhance process control
• Decrease mechanical stress on motor control applications
• Reduce energy usage and generate energy efficiently
• Optimize the operation of various applications relying on electric motors

AC drives are sometimes known by other names, such as adjustable frequency drives, adjustable speed drives, variable speed drives, variable frequency drives, frequency converters, inverters, and power converters.

The necessity for energy conservation to preserve the environment and the safe operation of motors is a driving force behind developing speed control devices. AC drives give the best means of adjusting the speed of electrical motors to match load demand. 

Advantages of AC drive:

• Reduces operational maintenance costs of various machines.
• Increases the scrap value of the machines.
• Reduces ambient noise emissions
• Reduces downtime and operating costs of businesses
• Saves energy during the part-load or no-load operation.
• Smaller, lighter, and more commonly available
• Work in potentially dangerous settings for the operations of various industries such as chemical plants, petrochemical plants, etc.

Disadvantages of AC drive :

• Increases the operation complexity of the machines
• Power converters for AC drives are more expensive
• Power converters for AC drives generate harmonics in the supply system and also load circuit

A gentle start/stop is achievable by AC drive since an AC motor starts at a low frequency, and the acceleration/deceleration may be changed at any moment. It aids in the prevention of load dropouts on compressors, conveyors, extruders, fans, pumps, and blowers, among others that travel slowly and change speed often. Also, by reducing the current at startup, the load on the power supply side is reduced.

Market Opportunities:

Growing food and beverage industries are increasing the demand for HVAC and others.

Consumers, governments, and industry leaders worldwide are calling for more efficient and transparent food and beverage production. To meet this demand, food and beverage industries are employing various machineries in processes from raw material handling to pumping and conveying of ingredients, from processing by mixing and cooking, as well as during packing and storage. However diverse the application, they all rely on one common factor: electric motors will drive the demand for AC drives.

Some of the AC Drives Market Opportunities:

• Growing demand for Internet Of Things (IoT) or Automation in Industries, Commercials are increasing the demand for AC drives.
• Growing demand for EVs in material handling will increase the demand for AC drives. 
• Growing demand for microdrives in HVAC systems, chairs, and others.

Some of the AC drives Market Challenges:

• Rising Competition from the local firms.
• Supply constraints of semiconductors are challenging the AC drives the market.

Some of the AC Drives Market Restraints:

• The decrease in operation and new constructions of coal-fired power plants around the world is decreasing the market for AC drives.
• The increasing complexity of AC drivers in synchronizing multiple devices is restraining the market.

AC Voltage drives market growth is dependent on some key industries, primarily in heavy processing industries such as Oil and gas, Mining, Power Generation, Metals, and others.

AC Drives Market in the Power Generation Sector

The power generation sector remains a steady business for global suppliers. Still, opportunities for AC drives will become less prevalent as fossil fuel power generation is increasingly replaced by renewable power generation. A coal-fired power plant operation involves several applications suited for AC drives; renewable power generation offers very few opportunities for AC drives.

AC Drive Market in the Oil and Gas Sector

In the oil and gas industry, AC drives have opportunities primarily in the midstream, downstream, and LNG subsectors. Midstream pipelines remain the largest application for AC drives in the oil and gas sector. Despite the media-hyped opposition to larger pipelines such as the Keystone XL, numerous other pipeline projects provide stable demand for AC Drives. 

AC Drives Market in the Transportation Sector

In the transportation sector, AC drives find their application as a speed controller in Electric Vehicles such as golf carts, E-rickshaws, forklifts, and others. The demand for AC drives in the transportation sector is expected to grow with the growing popularity of electric vehicles.

AC Drives Market in Textile and Paper:

The textile and paper industry consists of various processes, and the requirements for drives vary according to the application. For example, the textile and paper industry has winder and unwinder control in the spinning process and regulates the tension of the paper. The winder in textiles and paper uses a roll to wind the stretched yarn, and it is required to manage the tension and pace of the yarn and paper bundle while it travels at high speed.

 Market developments and trends: 

• In July 2022, Rockwell Automation updated CENTERLINE 2500 low-voltage motor control centers (MCCs) with two more PowerFlex variable frequency drives (VFDs) to help industrial operators in global IEC markets improve their production, safety, and energy performance.
• In July 2022, Rockwell Automation introduced PowerFlex 6000T drives for heavy industries such as oil and gas refining; mining, mineral and metal processing; power generation plants; and water and wastewater treatment facilities.
• In 2021, ABB obtained large-scale orders for electrification, automation, motors, and drives at Sundsvall, Sweden, for the world's first commercial-scale textile recycling factory. Renewcell is a rapidly expanding Swedish sustainable technology firm specializing in textile-to-textile recycling.
• In 2020, Danfoss delivered AC drives and products to Wärtsilä's Smart Technology Hub for development and research. This strategic platform partnership helped the company generate revenue from the novel product.
• In 2020, Danfoss Drives introduced a new series of AC drives to selected customers with demanding applications. The new product series was presented under a new product brand called iC7. These products represent a new generation of AC drives focusing on intelligence, cyber security, and data analytics.

Regional Market Analysis:

The global AC Drives market report is segmented based on geography into North America, including the United States, Canada, Mexico, and the Rest of North America; Europe, including Germany, France, United Kingdom (UK), Italy, Russia, and the Rest of Europe; Asia Pacific (APAC) including China, India, Japan, South Korea, Australia, Indonesia, and Rest of APAC; South America including Brazil and Rest of South America; and the Middle East and Africa including Saudi Arabia, Brazil, Nigeria, South Africa, and other countries.

Asia-Pacific is expected to be the leading region in the AC Drive market during the forecast period, followed by North America, Europe, and South America.

Asia Pacific:

The Asia Pacific region has countries that have both developing and established AC Drive markets. For instance, due to rapid urbanization and industrialization, the AC Drive markets are growing in countries such as China, India, South Korea, and others.

Blackridge Research's AC Drive Market report provides insights into the current market demand environment and prognosis.

The study thoroughly examines the many factors that impact the development of the AC Drives Market. The study also comprehensively analyses the AC Drives Market by segmenting it based on region (Asia Pacific, Middle East, Europe, North America, South America, Africa).

The report also discusses current and future market possibilities, trends, advancements, the effect of Covid-19 and the Ukraine and Russian War on the AC Drives market, essential developments, regions, and segments poised for the fastest growing competitive landscape. Further, the report will also provide the AC Drives market size, demand forecast, and growth rates.